Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-09-21
POLITICS AND SPECULATION.
How the Financial situation il Com
plfcated by Interested Parties.

REPORTS OF STRINGENCY THE MONEY MARKET
BELIEVED TO BE ExAGGERATKD-THE SURPLUS AND
EXTRA SESSION PREsSURE-No RADICAL CHANGE
OF THE TREASURY POLICY LIKELY UNLESS THERE
SHOULD BIZ AN UNMIsTAKABLE NECESSITY FOR IT.
The financial situation is being watched very
closely by the President as we'll as by Acting
secretary Thompson. 1t is perplexing, but no
change OF policy has been proposed for the present.
ihat there is tightneSs in the money market Is
recognized in the Department, and there is deep
anxiety to meet the demands OF the occasion as
nearly as 1t Is possible to do So But 1t is believed
that there Is not the danger of q crisis that all
the talk and hub-bub in Wall street would indi-
cate. Parties, from selfish motives, have seized
upon the opportunity presented by the actual
shortage In money to shape things to their own
ends. The distress is partly real and partly 1cti
tlous Both politics and speculation are believed
10 enter into the NATTER and the difference OF
opinion among financial magnates as to whether
the treasury should go on buying bonds as it Is
now doing, or should make q radical departure
ana put out a considerable amount OF the surplus
iholcates TO the Department reason to doubt that
taere Is at present serious necessity for change
OF their method. The ''bulls' and the 'bearS' are
pound to pull contrarywise with exaggerated force
medium"
THE POLITICAL FEATURE OF THE SITUATION,
which 1t Is believed adds to the cry for the sur
plus to be let loose, is desire prevent reduc-
tlon OF the protective tariff by Congress this
winter. The tariff reformers are more hopeful
tnan iormerly. now that the Administration has
to pass tariff bin through the House. such a
i 6iIi as they might pass would not, in all proba
eiiity, meet with the approval Of the Senate. and
made to rest upon the upper house. Much
this, this situation. II the Treasury could be
1Orced TO buy up bonds at high premium, and so
release the surplus from the Treasury, the pres
sure would be relieved at once, there would be
met there would be no pressure upon them for
action The need for money in trade and COM
merce would not be felt again until the spring
meet and adjourn without taking any action TO
reduce the revenues The temporary relief afforded
Would 4cSe o great ha OF f as
Administration for tariff reduction, and bring
about more distressing financial situation at q
right OF the Department take such action. 1t is
therefore, the interest OF certain spectators and
eXaggerate the financial necessities at this time
rather than after Congress meets. But underlying
the disturbance there really is foundation.
There is
AN ACTUAL sTRINGENCY IN TIE MONEY MARKET,
which can be relieved at present only by the
Treasury Department. The Department recog-
nizes this, and the only question is whether what
they are now doing is all that is necessary or not
Ine lact That there are very few applications for
prepayment or interest," and that the bonds do not
| come in in great numbers at the Wednesdays
biddings seem to contradict the cry OF mo money Z"
There Is much that is contradictory in the situa-
ton. Business throughout the country is active,
and this, OF course. makes the demand for cur
rency great. There is no lrOn-riveted rule that
binds the Treasury to the line Of policy it is now
following: Ii 1t is concluded that the situation
demands 1t radical departure may be made at
any time, but no change has yet been determined
upon, That is a thing that must come with the
occasion.
SECRETARY THOMPSON WILL NOT DEPART
from the present policy without consultation with
Mr.. Fairchild. What the latter may conclude Is
best to do is, OF course, uncertain. He may re-
turn to Washington and resume his duties at any
time though the Department has no information
as to when he expects to get here. It cannot be
said that he will not adopt more liberal policy
but 1t Is safe to say that his action will be eau
ti0uS, and he Will not take the whole matter right
out OF the hands OF Congress by releasing all the
Treasury surplus. The chances appear to be that
he Will go cautiously little further toward the
relief OF the money market than he has yet gone
He may even offer to buy per cent bonds, but
not at anything like the premium at which they
are quoted.